Isodiol China plant ~20,000kg of ISO certified CBD-oil/yearIn April this year, Isodiol CBD was certified by the Medicines and Healthcare Products
Regulatory Agency (MHRA) as an Active Pharmaceutical Ingredient (API), which allows the Company to focus beyond nutraceuticals, specifically into pharmaceutical drug development and clinical trials. Today, Isodiol manufactures over 30 different products using 99.5%+ purity pharmaceutical grade cannabinoids and distributes in North America and internationally. The Company’s diverse product portfolio includes beverages, anti-aging skin care and nutraceuticals. Isodiol differentiates itself by producing high-quality CBD isolate on the market and controlling the entire supply chain process. In terms of quality, Isodiol’s CBD extract is derived from top-quality European Certified Organic Hemp.
The Company has exclusive contracts with the Academy of Agriculture Science Department, which allows the testing and production of a variety of hemp. Isodiol estimates the Company has achieved the highest purity CBD extract with negligible amount of THC.
In addition, the Company’s extraction facility for hemp oil is ISO-certified, which demonstrates high standards for quality of production and management. Isodiol’s facilities operate using state-of-the-art equipment with high-performance liquid chromatography (sophisticated procedure to separate and quantify each component in a mixture), resulting in the conversion of their raw extracted oil into a 99%+ pure isolate crystal, which are then used in a variety of their consumer products.
A third-party laboratory confirms the concentration, quality and safety of the product, in addition to Isodiol doing their own testing for the cannabinoid content, pesticide contaminants, heavy metals, and solvents.
The whole process of producing and testing is supervised by an experienced scientific team, ensuring the highest quality and safety of hemp-derived CBD products available on the market.
Isodiol’s current production facility in the Yunnan province of China has production capacity of 2,000kg CBD oil/year. The THC-Free CBD oil then gets exported to their UK GMP facility that refines the CBD molecule to a purity of more than 99.5%. Additionally, the Company is constructing what it estimates to be world’s largest CBD production facility in Yunnan. The expanded facility is expected to be operational by Q1/2019 and have a production capacity of 20,000kg of CBD-oil/year. The initiative to increase production is part of Isodiol’s expansion strategy, as the Company increases its presence in over-the-counter and pharmaceutical drugs while continuing to pursue international expansion into Latin America, Asia and Europe.
For the last three quarters, Isodiol has consistently been increasing quarterly revenue, hitting ~$5.8M in FQ3/2017.
According to management, 60% of Isodiol’s revenue comes from its bulk CBD isolate (pharmaceutical), and the other 40% from finished CBD nutraceutical products. The Company sells a kg wholesale for $7-$10K, implying that in 2019 with their new facility, Isodiol will generate a minimum of $84M from bulk powder annually.
The growing world demand for CBD has been demonstrated by the recent supply agreement Isodiol has signed with Nuuvera, Namaste Agrima botanicals, Zenabis and Sundial. These agreements are could drive up the prices of Isodiol’s products.
In an effort to expand its management team, grow its brand awareness, and escalate their growth in sales, Isodiol has executed numerous acquisitions, partnerships, and licensing agreements with companies in the medical and cannabis industry.
Isodiol’s most recent 51% partnership in Farmtiva Inc., a hemp cultivator with a facility of 160 acres in California, is an initiative to increase their production efforts in the western world to satisfy monthly supply contracts.
In May 2018, Isodiol completed the acquisition of KURE Corp, a specialty vape retailer with locations across the United States. KURE has 200,000 customer transactions per year and its customer base has been demanding CBD-related products. The Company has also acquired Azure Bottling LLC, a water bottling facility in Leesburg, Florida. Azure has production capacity of 5.3M bottles/month, which is anticipated to increase to 8.6M/month after several efficiency improvements in the upcoming months. The strategic acquisition of KURE is anticipated to boost the sales and brand recognition of Isodiol’s products by utilizing the acquired companies’ existing customer base and distribution channels.
In addition to Isodiol’s strong balance-sheet assets and growth, the Company also has a team with a successful track record and experience in capital markets, operations and pharmaceuticals. The team consists of:
- Marcos Agramont, CEO, is a prominent innovator in the cannabis industry, responsible for developing several delivery systems. Mr. Agramont has assisted in regulatory efforts for cannabis brands to be in line with compliance and meet safety standards.
- Troy Nihart, President, is a pioneer in development of a distribution network and introduction of hemp CBD to international and U.S. markets.
- Arman Parmar, Chairman, has more than 12 years of experience in public and private companies related to Health Care, Resource, Manufacturing and Real Estate sectors.
- Bryan Loree, CFO, has 10 years of experience in a position of Chief Financial Officer for International Corona Capital Corp., Cannabix Technologies Inc. and Torino Power Solution Inc. Mr. Loree also has extensive history in providing accounting, financing, and management services to numerous firms.
- Ronald Aung-Din, Medical Advisor, brings experience from his practices in General Neurology and Neuropsychiatry. Dr. Aung-Din is also a founder of AfGin Pharma, LLC, a R&D biopharmaceutical company investigating Topical Neuro-Affective Therapy.